Form Nyc-Uxs - Return Of Excise Tax By Vendors Of Utility Services (Page 3 of 4) in pdf

Instructions for Form NYC-UXS

F I N A N C E

NEW

YORK

GENERAL INFORMATI ON

income of a landlord is subject to tax, the amount of gross income in-

cluded in gross operating income is deemed to be equal to such landlord’s

cost, including transportation costs.

HIGHLIGHTS OF RECENT LEGISLATION

Effective January 1, 1998, landlords not subject to PSC supervision all of

Beginning January 1, 2006, metered sales of energy to tenants of certain

whose gross operating income for utility tax purposes for any period con-

cooperative housing corporations are exempted from the City utility tax.

sists of income not subject to tax as described in the preceding paragraph

The exemption applies to cooperative corporations with at least 1,500

are not required to file Form NYC-UXS for that period. An information

apartments that own or operate a cogeneration facility that was in place

return may be required to be filed by September 1 of each year.

before January 1, 2004 (or that replaces such a facility), and that make

metered sales of the energy produced for the development’s tenants or

Effective for tax periods beginning after 1998, returns are only required

occupants. See Ad. Code §§11-1101.25, 11-1101.26 and 11-1102(g). A

semiannually for taxpayers whose utility tax liability is less than $100,000

return must still be filed by the cooperative corporation using a tax rate

for the preceding calendar year, determined on an annual or annualized

of zero.

basis.

The Relocation Employment Assistance Program (REAP) has been rein-

Taxpayers first becoming subject to the utility tax must file monthly re-

stated and a program granting similar benefits to businesses that relocate

turns for every month of the calendar year in which they first become

to lower Manhattan (LMREAP) has been enacted. Both the reinstate-

subject to tax.

ment of the REAP program and the enactment of the LMREAP program

are effective as of July 1, 2003. See Administrative Code sections 11-

GENERAL DEFINITIONS

1105.2 and 11-1105.3

1. “Gross operating income” includes (1) receipts from furnishing or sell-

Effective for tax periods beginning on and after August 1, 2002, entities

ing gas, electricity, steam, water or refrigeration, or furnishing or selling

that receive eighty percent or more of their gross receipts from charges for

gas, electric, steam, water, refrigeration or telecommunications services,

the provision of mobile telecommunications services to customers will

(2) receipts from omnibus services (except limited fare omnibus compa-

be taxed as if they were regulated utilities for purposes of the New York

nies, see Item 3), whether or not a profit is realized, without deduction for

City Utility Tax, General Corporation Tax, Banking Corporation Tax and

any cost, expense or discount paid or 3) for tax periods beginning on or

Unincorporated Business Tax. Thus, such entities will be subject to only

after August 1, 2002, 84 percent of ALL charges for mobile telecommu-

the New York City Utility Tax. The amount of gross income subject to

nications services to customers where the place of primary use of the cus-

tax has been amended to conform to the Federal Mobile Telecommuni-

tomer is in the City. Such receipts are deemed to be derived from business

cations Sourcing Act of 2000. In addition, if any such entity is a part-

conducted wholly within the City. See, Ad. Code §11-1102(c) as

nership, its partners will not be subject to the New York City Utility Tax

amended. For this purpose, "place of primary use" has the same mean-

on their distributive share of the income of any such entity. Finally, for

ing as in the Federal Mobile Telecommunications Sourcing Act of 1999.

tax years beginning on and after August 1, 2002, partners in any such en-

See, Ad. Code §11-1101(4) as amended. For tax periods beginning on or

tity will not be subject to General Corporation Tax, Banking Corporation

after August 1, 2002, “Gross operating income” does not include the tax-

Tax or Unincorporated Business Tax on their distributive share of the in-

payer’s distributive share, if any, of income gains, losses and deductions

come of any such entity. Chapter 93, Part C, of the Laws of New York,

from any partnership subject to the NYC Utility Tax as a utility or ven-

2002.

dor of utility services, including its share of separately reported items.

Ad. Code §11-1102(f)(2). (See “Vendor of utility services” defined

NOTE: There have been substantial changes to the Energy Cost Savings

below.)

Program. For information, call (212) 513-6345.

2. “Vendor of Utility Services” Every person (1) not subject to the

Chapter 536 of the Laws of 1998 made the following changes to the New

supervision of the New York State Department of Public Service who

York City Utility Tax:

furnishes or sells gas, electricity, steam, water or refrigeration or fur-

Effective January 1, 1998, a vendor of utility services includes every per-

nishes or sells gas, electric, steam, water, refrigeration or telecommuni-

son not a utility, as defined in section 11-1101.6 of the Ad. Code, who

cations services, or (2) who operates omnibuses (including school

provides telecommunications services which are defined as including any

buses), whether or not the operation is on the public streets and re-

transmission of voice, image, data, information and paging through the

gardless of whether the furnishing, selling or operation constitutes the

use of wire, cable, fiber optic, laser, microwave, radio wave, satellite or

main activity of the person. Effective for tax periods beginning on and

similar media. See Ad. Code §11-1101.9.

after August 1, 2002, entities that receive eighty percent or more of

their gross receipts from charges for the provision of mobile telecom-

Effective January 1, 1998, receipts from sales of gas, electricity, steam,

munications services to customers will be taxed as if they were sub-

water or refrigeration or the rendering of gas, electric, steam, water or re-

ject to the supervision of the Department of Public Service of the State

frigeration service to a landlord not subject to Public Service Commission

of New York and will NOT be considered vendors of utility services.

supervision for resale by such landlord to tenants are not excluded from

gross income of a utility.

3. “Limited Fare Omnibus Companies” Omnibus companies fran-

chised by the City whose principal source of revenue is from trans-

Effective January 1, 1998, gross operating income of a landlord not sub-

porting passengers daily within the City over fixed routes at fares no

ject to PSC supervision does not include income derived from the resale

higher than those charged by the New York City Transit Authority.

of gas, electricity, steam, water or refrigeration or gas, electric, steam,

Limited fare omnibus companies are required to file NYC-UXRB.

water or refrigeration service to tenants, provided, that in the case of a

resale of gas, electricity, or steam or gas, electric, or steam service, the

Line 13 - Sales and Compensating Use Tax Refunds

utility tax has been paid or accrued with respect to a prior sale. If such

If you received a refund in the current period of any sales and use taxes

Form Nyc-Uxs - Return Of Excise Tax By Vendors Of Utility Services Page 3

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